🌳 How To Use Leverage To Your Advantage

QUOTE OF THE DAY

HOW TO USE LEVERAGE TO YOUR ADVANTAGE

406 Words | 1 Min 29 Sec Read

Leverage is this superpower of a tool that will allow you to put in the same amount of effort on a task and get an unlimited x return on the output. The best way it can be described is like when you go over a speed boost in Mario cart. The track is your task, the speed boost is leverage.

You will find opportunities for using leverage everywhere you look with some more extreme than others for example, you’re leveraging your mail app right now to read today’s edition and there are people out there that leverage other people’s money to make more money for themselves. Leverage is everywhere.

But how can you actually use it to your advantage? We are going to take a brief look at the book ‘Almanack of Naval Ravikant’ to explain it best.

“The year I generated the most wealth for myself was actually the year I worked the least hard and cared the least about the future. I was mostly doing things for the sheer fun of it.“ - Naval Ravikant

There are three broad classes of leverage In the modern day:

• Labour

• Capital

• Code

• Audience

Labour:

Traditionally, this meant hiring people. People are the most obvious type of leverage as you can accomplish more while working in a team than by yourself. A team of two people can get more than double the results than that of a single person.

Capital:

Capital naturally provides leverage. It gives you the ability to buy assets that can grow in value, thus giving you a return on investment. Capital can also be reinvested to buy into other forms of leverage.

You can buy people leverage by paying employees or contractors. You can use capital to physically buy advantages: a plane ticket, advertising for your business, joining a networking event — these are all forms of leverage that can give you some future reward.

Code:

Code leverage is the ability to generate algorithms — contained in apps or programs — that can be useful and automate tasks that you don’t want to do. Even better, you can even sell them to others. Code it once and sell it forever.

Audience:

Thanks to social media such as Facebook, Twitter or Instagram and content sites such as YouTube, Twitch and Tiktok we are living for the first time ever the democratization of not just the delivery of content, but access to the creators of content.

ACTIONABLE NEXT STEPS:

Taking advantage of leverage is a skill that anyone can learn. The core concept of leverage is that you want to detach your output from your input. Work in a way that you can scale it up without having to commit any extra time or effort yourself.

TAKEAWAYS:

The way you can tell that your leverage is increasing is that you can make more money with the same amount of time and effort as before.

Find a point of leverage in every situation and your life will become a lot easier.

BOOK OF THE WEEK ⤵️

The book of the week is ‘Ego Is The Enemy’ By Ryan Holiday. It’s a book about how ego is such a powerful internal opponent to be guarded against at all stages of our careers and lives and how to use it to our advantage. Check it out HERE

CREATOR OF THE WEEK ⤵️

The Creator of the weak is @Kennysfit, a self-improvement creator who focuses on helping young males improve their lives. He talks about tips, tricks and shares stories on how to better your life in a super engaging manner.

LESSON OF THE DAY ⤵️

Double down on what is working best.